
A major shift in who can receive taxpayer-funded health coverage took effect this month, and the early numbers are far larger than many people expected.
New eligibility limits under President Trump’s One Big Beautiful Bill Act began on October 1. They narrow which noncitizens can stay on Medicaid, the joint federal and state program funded by taxpayers.
Data collected from states points to more than 281,000 immigrants in nine states and Washington, D.C., losing coverage this month. That figure comes from a KFF Health News survey, and it covers only a handful of states.
Final national numbers will not be available until later this fall, which means the real total across the country could be considerably higher.
The president signed the sweeping tax and spending law on July 4, 2025. It rewrote Medicaid rules, including tighter work requirements for able-bodied adults, more frequent eligibility checks and restrictions on noncitizens.
Under the new law, federal Medicaid eligibility is preserved for qualifying lawful permanent residents, certain Cuban and Haitian entrants, and citizens of Compact of Free Association nations. States keep options to cover lawfully residing children and pregnant women under specified circumstances.
The categories that lose eligibility include some refugees, asylum recipients, trafficking victims and Afghan interpreters who assisted U.S. troops. Those are people who are lawfully in the country, and the change affects them more than anyone else.
It is worth being precise here, because the politics of the issue are often muddied. People who are in the country illegally were already generally barred from federal Medicaid, apart from emergency care, under long-standing law.
What the new law does is tighten the rules for people with legal status who had been eligible before. The administration’s argument is that the program is meant first for American citizens and for immigrants who have earned permanent status.
The White House has said as much. A spokesperson said President Trump and this administration will always put American citizens first.
For many, the logic is simple. Medicaid is paid for by working taxpayers, and every dollar that goes to someone outside the eligibility lines is a dollar not available to the citizens and legal permanent residents the program was built to serve.
Mehmet Oz, who runs the Centers for Medicare and Medicaid Services, has put it in similar terms. He has said that every dollar misspent is a dollar taken away from an eligible, vulnerable person who needs Medicaid.
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